"Fast Tightening and the Credit Channel" with C. Michelacci
This paper examines how rapid unexpected monetary tightening affects bank liquidity, credit supply, and financial stability. We document key empirical patterns from recent tightening episodes and develop a theoretical model to explain them. The model underscores the roles of capital losses on securities and deposit shifts in transmitting monetary policy through the banking sector.
"Subsidizing Business Entry in Competitive Credit Markets", with V. Cuciniello and C. Michelacci, forthcoming at the Journal of Political Economy
“Spending Allocation under Nominal Uncertainty: A Model of Effective Price Rigidity", with G. Gaballo, forthcoming at the Journal of the European Economic Association
"Ambiguity Aversion and Heterogeneity in Households' Beliefs", with C. Michelacci, The American Economic Journal: Macroeconomics, April 2024
"The Extensive Margin of Aggregate Consumption Demand" with C. Michelacci and A. Pozzi, The Review of Economic Studies, June 2021
"Ambiguous Policy Announcements" with C. Michelacci, The Review of Economic Studies, Volume 87, Issue 5, October 2020, Pages 2356–2398
"Price Dynamics with Customer Markets", with A.Pozzi and N.Trachter, The International Economic Review, 2019, Volume60, Issue1
"Monetary Shocks with Observation and Menu Costs", with F. Alvarez and F. Lippi. The Journal of the European Economic Association, 2018, Vol 16 (2)
"Monetary Shocks in Models with Inattentive Producers", with F. Alvarez and F. Lippi. Online Appendix. The Review of Economic Studies, 2016, 83 (2): 421-459.
"Monetary Policy, Doubts and Asset Prices", with P. Benigno. The Journal of Monetary Economics, 2014, Vol 64
"Exogenous Information, Endogenous Information and Optimal Monetary Policy", with M. Wiederholt. The Review of Economic Studies, 2014, Vol 81
"Optimal price setting with observation and menu costs", with F. Alvarez and F. Lippi. The Quarterly Journal of Economics, 2011, Vol 126 (4).
"Does Inflation Adjust Faster to Aggregate Technology Shocks than to Monetary Policy Shocks?". The Journal of Money, Credit and Banking, 2011, Vol 43 (8)
"Monetary Policy and Price Responsiveness to Aggregate Shocks under Rational Inattention". The Journal of Money, Credit and Banking, 2012, Vol 44 (7)